As I understand this ETF, they simply pass through the divis received from the company holdings (NLY, etc.) in the portfolio. They don't cut or increase. If the companies in the portfolio pay well, the ETF pays well. Check out the description on the iShares website. In gerneral, mortgage reits will do fine so long as the cost of borrowed funds is low and they can lend at higher rates. Read the message board for NLY, for example, good posters there. Sept divi should be declared in a few days.